How is FD interest compounded?

Most banks compound FD interest quarterly: each quarter the balance grows by one-fourth of the annual rate, so A = P x (1 + r/400)^(4 x years).

FD or RD — which earns more on the same total deposit?

The FD, because the full amount compounds from day one while RD instalments trickle in. RD wins on discipline: it builds the habit of saving every month.

Why does my bank quote a slightly different RD maturity?

Banks compound RD deposits quarterly while many calculators compound monthly. The gap is small (a fraction of a percent) and shrinks over shorter tenures.

FD & RD Calculator

Project fixed-deposit maturity with quarterly compounding or recurring-deposit maturity from monthly instalments.

Estimate fixed deposit and recurring deposit maturity instantly. Free online FD RD calculator with invested amount, interest earned and maturity value.

About FD / RD Returns

Project fixed-deposit maturity with quarterly compounding or recurring-deposit maturity from monthly instalments.

Fixed deposits grow a single lump sum with quarterly compounding, while recurring deposits stack monthly instalments that each earn interest for their remaining tenure. This calculator models both correctly: pick the deposit type, enter the amount, rate, and tenure, and compare maturity value against what you put in.

RD math here compounds monthly, matching the common online convention; banks that compound quarterly may differ by a small margin. FD math compounds quarterly, the market standard.

Everything computes locally in your browser.

Where it is used

Savers comparing bank FD tenures and rates, planning RD contributions toward a goal, and contrasting FD lump sums against RD instalments.

How to use the FD / RD Returns

Deposit Type — enter the value.
Deposit Amount — enter the value (e.g. 100000).
Annual Interest Rate (%) — enter the value in % (e.g. 7).
Tenure (Years) — enter the value (e.g. 5).
Calculate — press the Calculate button to see the result instantly above.

Formula

FD: A = P x (1 + r/400)^(4 x years). RD: FV = P x (((1 + i)^n - 1) / i) x (1 + i), monthly.

Examples

Example

mode:fd

principal:100000

annualRate:7

years:5

Result: Maturity value ≈ $141,478 on $100,000 invested

Frequently Asked Questions

How is FD interest compounded?: Most banks compound FD interest quarterly: each quarter the balance grows by one-fourth of the annual rate, so A = P x (1 + r/400)^(4 x years).
FD or RD — which earns more on the same total deposit?: The FD, because the full amount compounds from day one while RD instalments trickle in. RD wins on discipline: it builds the habit of saving every month.
Why does my bank quote a slightly different RD maturity?: Banks compound RD deposits quarterly while many calculators compound monthly. The gap is small (a fraction of a percent) and shrinks over shorter tenures.

Calculator Inputs